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Port Efficiency and Trade Flows

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  • Bruce A. Blonigen
  • Wesley W. Wilson

Abstract

Growing international trade and increasing congestion focus attention on trade facilitation. Ocean ports are a central and necessary component in facilitating trade. Yet, there is only limited comprehensive information available on the efficiency of ports or evidence of the effect of port efficiency on trade. We develop and apply a straightforward approach to estimate port efficiency. The approach uses detailed data on US imports and associated import costs, yielding estimates across ports, products, and time. These measures are incorporated into a gravity trade model where we estimate that improved port efficiency significantly increases trade volumes.

Suggested Citation

  • Bruce A. Blonigen & Wesley W. Wilson, 2008. "Port Efficiency and Trade Flows," Review of International Economics, Wiley Blackwell, vol. 16(1), pages 21-36, February.
    • Handle: RePEc:bla:reviec:v:16:y:2008:i:1:p:21-36
    DOI: 10.1111/j.1467-9396.2007.00723.x
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    References listed on IDEAS

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    1. Clark, Ximena & Dollar, David & Micco, Alejandro, 2004. "Port efficiency, maritime transport costs, and bilateral trade," Journal of Development Economics, Elsevier, vol. 75(2), pages 417-450, December.
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    9. Estache, Antonio & Gonzalez, Marianela & Trujillo, Lourdes, 2002. "Efficiency Gains from Port Reform and the Potential for Yardstick Competition: Lessons from Mexico," World Development, Elsevier, vol. 30(4), pages 545-560, April.
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